Pros And Cons Of Buying Or Building A House

What is cheaper, buying or building a house?Everybody loves getting brand new things, especially when these things are custom-made for you, right? However, the issue with custom-made things is that they come with greater price tags and lengthier delivery times. These are the significant factors while determining if you need to opt for buying or building a house. Keep in mind that a house is a huge financial responsibility and you don’t want to make an incorrect choice here. For helping you land the deal for yourself and your budget here are the pros and cons of building a house.

What is cheaper, buying or building a house?

The average costing involved in building a house in 2020 was more than $4,50,000. The average cost for buying an existing single-family house is around $3,00,000. It means choosing to purchase a pre-existing home rather than building a house as it will save you close to $1,50,000. If you took a middle road and decided to buy a new and semi-customized tract home, it is still going to cost you more than your prior owned house.

Pros of building a house

After you have taken into consideration the pricing part, now let’s take a look at some advantages of building a house.

Customizing: When you are building a house from the ground up, you can personalize the details so that they suit your taste and lifestyle. This is true for everything from cabinets, flooring, and layout to lighting, sinks, paint, and even doorknobs. Even the tract homes built within subdivisions can permit a degree of customization in terms of flooring alternatives, color choices, and finishing.
Almost non-existent competition: Although it may come as a shock to many, given the advent of the pandemic in the last year, the real estate business in 2021 is hot. The existing homes available in the market are disappearing quickly. Therefore, the competition for finding the best available house at a lower price can be difficult. If you already have a piece of land for building a house, there is no competition involved.
Low maintenance: As new homes are developed for meeting the current building codes and come with the latest technology, there is no need to worry about repair costs and heavy maintenance problems especially in the initial years. This means you do not have to face problematic HVAC systems or leaky roofs.
Lesser energy costs: Many times, new homes feature modern energy-efficient systems and materials. This normally means lesser energy bills.
New facility: You receive an opportunity to make a fresh beginning as the first owner of the property. You will have the opportunity to enjoy the brand-new spanking systems, fixtures, and finishing.

Cons of building a house

There are some cons of building a house as well such as longer waiting periods, negotiation difficulties, stress, mud, noise, and hidden costs.

Tips for payment while building a house

Whether you are buying or building a house, ensure that you are sticking to a property you can afford. Never opt for a home that has a monthly repayment of more than 25% of your take-home pay. If you take this risk, you are likely to be house poor. This is including everything from mortgage premium and down payment. Keep in mind the HOA fees while preparing the budget as the new home is a component of HOA. There are online tools available for calculating the payment details. There are some mortgage providers available online as well that offer conventional loans with fixed rates. Any other kinds of mortgages are likely to be costly in terms of interest and fees. They are likely to keep you withering in debt for many years. Whether you are buying or building a house, owning a property is an incredible way of developing wealth.

For the first-time homebuyer, it is a good idea to take the cheaper route and buy an existing house. This will allow him to acquire some homeownership reps and develop equity. This is a good preparation before you can take on the task of building a house. However, if you are confident, you may consider building a house by staying within the budget and yet handling all the homeownership costs such as utilities and maintenance. Building a house can turn out to be a fun adventure for many.

One of the better ways while deciding on buying or building a house is to consult with an expert real estate agent. This agent will be aware of the best deals available out there, especially in the long-standing neighborhoods and also in the new communities. If you are interested in learning more about building a new home that fits your lifestyle, come tour the model homes at North River Ranch in Parrish, FL. Or view the quick move-in and ready-to-build homes on our website at

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